2017.05.2908:18:00UTC+00U.S. Dollar Trades Lower Against Majors

The U.S. dollar traded lower against its major counterparts in the European session on Monday amid geopolitical worries, as the U.S. President Donald Trump reacted to recent reports that his son-in-law Jared Kushner is being focused upon by the Federal Bureau of Investigation in the Russia probe.

Trump on Sunday attacked the news media, saying that numerous leaks from the White House were "fabricated lies made up by the #FakeNews media".

"Whenever you see the words 'sources say' in the fake news media, and they don't mention names........it is very possible that those sources don't exist but are made up by fake news writers. #FakeNews is the enemy!," he tweeted.

His outrage came after last week's news that Kushner had proposed to set up a secret communication line between the Kremlin and the Trump transition team.

European stocks retreated, as oil extended last week's drop and Italian banks came under selling pressure after the Financial Times reported that Intesa Sanpaolo is considering closing branches and cutting costs in a strategy shift.

The G 7 summit over the weekend failed to make progress on narrowing differences on climate change and North Korea fired another missile off its east coast, the latest in a fast-paced series of missile tests defying world pressure and threats of more sanctions.

The greenback showed mixed trading in the Asian session. While the currency held steady against the euro and the franc, it rose against the yen. Against the pound, it declined.

Reversing from an early session's high of 1.1159 against the euro, the greenback edged down to 1.1190. Continuation of the greenback's downtrend may see it challenging support around the 1.13 region.

Data from the European Central Bank showed that Eurozone money supply and credit to private sector grew at slower pace in April.

The broad monetary aggregate M3 climbed 4.9 percent annually, slower than the 5.3 percent increase in March. The annual rate was forecast to moderate to 5.2 percent.

The greenback weakened to 1.2849 against the pound, compared to 1.2805 hit late New York Friday. The next possible support for the greenback is seen around the 1.30 area.

The greenback edged down to 0.9732 against the Swiss franc, off its early high of 0.9759. If the greenback-franc pair extends slide, 0.95 is likely seen as its next support level.

The greenback held steady against the Japanese yen, after paring gains to 111.23 early in the trading session. This may be compared to a high of 111.47 hit at 9:15 pm ET.

The greenback weakened to 0.7088 against the NZ dollar, its lowest since March 21. On the downside, 0.72 is possibly seen as the next support level for the greenback.

The greenback reversed from an early high of 1.3466 against the loonie, weakening to 1.3442. The greenback is likely to find support around the 1.32 mark.

Looking ahead, the European Central Bank President Mario Draghi testifies about the economy and monetary developments before the Economic and Monetary Affairs Committee, in Brussels at 9:00 am ET.

The U.S. markets remain closed due to the Memorial Day holiday.